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Amazon.com, Inc. (AMZN) Traders Wager on Downside

Amazon.com, Inc. (AMZN) may venture into brick-and-mortar retail

Digital Content Group
Feb 3, 2015 at 1:34 PM
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Amazon.com, Inc. (NASDAQ:AMZN) is down 0.3% this afternoon at $363.33, and options traders are gambling on additional downside through the end of the week. Specifically, buy-to-open activity is detected at the Internet marketplace's weekly 2/6 360-strike put. In other words, these speculators expect the shares to breach $360 by this Friday's close, when the weekly series expires.

By contrast, in recent sessions, option buyers have shown a decisive preference for calls over puts. AMZN's 10-day call/put volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 1.28 -- higher than 78% of comparable readings from the last year.

This optimism is reflected among the brokerage bunch, as well. Of the 28 analysts following AMZN, 16 have doled out "buy" or better recommendations, versus 12 "holds" and not a single "sell."

Much of this positive energy is the result of AMZN's recent earnings beat. In fact, after the company posted a better-than-expected fourth-quarter profit late last week, the shares rose 13.7% in the ensuing session.

Elsewhere, Amazon.com, Inc. (NASDAQ:AMZN) is making headlines today as RadioShack Corporation (NYSE:RSH) spirals toward bankruptcy. Specifically, the former is reportedly in talks to buy some of the latter's retail locations to showcase AMZN products, and to serve as pickup and drop-off hubs.

 

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